Semiconductor Signal · 04 July 2026

PM Modi Inaugurates CG Semi OSAT Facility at Sanand — India's Third Operational Semiconductor Unit

PM Modi inaugurated commercial production at CG Semi's OSAT facility in Sanand, Gujarat on July 4 — a ₹7,600 crore JV between CG Power, Renesas Electronics America, and Stars Microelectronics.

OSAT · Sanand · CG Semi · Gujarat · ISM 04 Jul 2026 · 14:00 0thIST 123 views 2 min read

The CG Semi G1 plant currently runs at 0.5 million chips per day producing QFN, QFP, FC-BGA, and FC-CSP packages for automotive, industrial, 5G, IoT, and power sectors. Chips were already being exported to Malaysia before the formal inauguration — production was live ahead of the ceremony. A second plant (G2) is under construction and expected online by end-2026; combined G1+G2 capacity at full ramp is 15 million chips per day, targeting 4.7 billion units annually over five years.

This is India's third consecutive PM-inaugurated semiconductor facility in 2026 — after Micron (February 28) and Kaynes (March 31). Union Minister Ashwini Vaishnaw, Gujarat CM Bhupendra Patel, and the Deputy CM were all present. Gujarat now has six ISM-approved projects with a combined investment of USD 14.7 billion.

What this means

Sanand now has three operational OSAT/ATMP facilities within a 12km radius. An engineering college or ITI within 200km has three confirmed live placement destinations with distinct packaging technology profiles — Micron for memory test engineering, Kaynes for IPM wire bonding, CG Semi for automotive-grade FC-BGA assembly. A single OSAT curriculum core with facility-specific modules in the final semester can place students across all three. The window to be the first institution to build this programme and sign MoUs with all three facilities is open right now.

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🇮🇳 PM Modi inaugurates CG Semi's OSAT plant at Sanand, Gujarat — ₹7,600Cr, 3rd semiconductor facility in 2026. QFN/FC-BGA for auto, 5G, power. G2 plant coming by Dec. Sanand is now India's first chip packaging cluster. #IndiaChips #OSATIndia #SemiconIndia
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